Equinix Expands in Africa with Acquisition of MainOne |


REDWOOD CITY, California, Dec. 7, 2021 / PRNewswire / – Equinix, Inc. (Nasdaq: EQIX), the global digital infrastructure â„¢ company, today announced its expansion into Africa through its intention to acquire MainOne, one of the leading providers of data centers and connectivity solutions in West Africa, present in Nigeria, Ghana and Côte d’Ivoire. The acquisition is expected to be completed in the first quarter of 2022, subject to the satisfaction of customary closing conditions, including required regulatory approvals.

The transaction has an enterprise value of US $ 320 million and is expected to generate AFFOs at closing, excluding integration costs, marking the first step in Equinix’s long-term strategy to become one of Africa’s leading operator-neutral digital infrastructure companies . With more than 200 million people, Nigeria is africa greater economy and, with Ghana, has grown into a well-established data center. This makes the acquisition a critical entry point for Equinix to the continent.

Equinix believes MainOne is one of the most exciting tech companies to emerge Africa. Founded by Funke Opeke in 2010, the company has enabled connectivity for Nigeria’s business community and now has digital infrastructure assets, including three operational data centers, with an additional facility under construction slated to open in first quarter 2022. Upon closure, these facilities will add more than 64,000 gross square feet of space to Platform Equinix®, with 570,000 square feet of land for future expansions. MainOne owns and operates a submarine network from Nigeria To Portugal, as well as 1,200 kilometers of reliable terrestrial fiber network in the south Nigeria. All of this improves connectivity to and from Europe, West African countries and the main business communities in Nigeria. Once completed, this acquisition will expand Platform Equinix to West Africa, giving organizations based inside and outside Africa access to one of the fastest growing markets in the world.

Charles Meyer, President and CEO, Equinix:

“The acquisition of MainOne will represent a critical entry point for Platform Equinix into the expanding and rapidly growing African market. MainOne’s leadership position in interconnection and its experienced management team are key strengths in our aspirations to be the leading neutral provider of digital infrastructure in Africa. Growth in data consumption in Africa is among the fastest in the world, and our customers are looking for a trusted partner to seize the opportunities presented by broad mobile adoption and greater connectivity across the region. MainOne’s infrastructure, customer relationships, partner ecosystem and operating capacity will extend Platform Equinix’s reach and enhance opportunities for customers in Africa and all over the world.

Under the terms of the transaction, the management team, including the CEO Funke opeke, will continue to exercise their respective functions. Opeke holds a master’s degree in engineering from Columbia university and was named one of the World’s 50 Best Women in Tech by Forbes in 2018 for his efforts to drive internet adoption. She was also recently named one of Data Center Magazine’s Top 10 Women to Watch in the Data Center Industry.

Highlights

  • Under the terms of the agreement, Equinix intends to acquire MainOne and its assets in an all-cash transaction at an enterprise value of 320 million US dollars, which should generate AFFOs at closing, excluding integration costs. The transaction is expected to close in the first quarter of 2022, subject to the satisfaction of customary closing conditions, including required regulatory approvals.
  • MainOne’s assets include:
    • Three data centers operational, with an additional facility under construction slated to open in the first quarter of 2022. These facilities will add more than 64,000 gross square feet of space to Platform Equinix, in addition to 570,000 square feet of land for future extensions.
    • A vast submarine network extending over 7,000 kilometers of Portugal To Lagos, Accra and along the West African coast, with landing stations in Nigeria, Ghana and Côte d’Ivoire.
    • A terrestrial network of more than 1,200 kilometers of reliable terrestrial fiber in Lagos, Edo and Ogun States. Connectivity to terrestrial sites spans 65 PoPs (points of presence) in cities across Portugal, Nigeria, Ghana and Ivory Coast.
    • Access to major Internet exchanges allowing low latency to major global networks including Amazon, Microsoft, Apple, Google and Facebook.
    • There are an estimated 800+ business-to-business customers, including large international technology companies, social media companies, global telecom operators, financial services companies, and cloud service providers.
    • Almost 500 employees and a management team with in-depth knowledge of local and international markets.
  • The installations generate approximately 60 million US dollars annualized revenue (T2’21LQA) with a purchase multiple of around 14x EBITDA.
  • Globally, Platform Equinix includes 237 data centers in 65 metropolitan areas and 27 countries, providing data center and interconnection services to more than 10,000 of the world’s largest companies, including more than 50% of Fortune companies. 500.

Additional quotes

John Dinsdale, Chief Analyst and Research Director, Synergy Research Group:

Africa was the missing piece of the Equinix puzzle, and this acquisition of MainOne will be a big first step on the continent. The demand for data center services in Africa is strong, with Nigeria at the epicenter of exponential economic growth in West Africa. Nigeria is africa the largest country in terms of population and economy, and its growth drivers include rapid mobile adoption, increased data consumption of its young population, good underwater and land connectivity, and an enterprise market solid. This moves the region towards a more digital economy and spurs the growth and expansion of data centers to provide much needed digital infrastructure. “

Funke Opeke, Founder and CEO of MainOne:

“Equinix will accelerate our long-term vision to increase investment in digital infrastructure through Africa. I would like to thank our founding shareholders led by Mr. Fola Adéola, MainStreet Technologies, AFC, PAIDF, FBN, Polaris and AfDB for investing in MainOne’s vision to bridge the digital divide in Africa. With values ​​and a culture similar to those we have jointly built in twelve years, Equinix is ​​the preferred partner for our growth journey. The MainOne team is excited about the partnership created through the acquisition, and we look forward to building our next chapter together. ”

Eugene Bergen, President, EMEA, Equinix:

“The extension in Africa has long been a strategic priority for us. With MainOne, we’ve found a company that not only has highly complementary data center and connectivity assets, but can further accelerate the expansion of our business model and growth goals. CEO Funke opeke and his team have built a powerful and dynamic infrastructure that will allow international clients to access the continent and African organizations to access the Equinix global platform. Customers can take full advantage of Equinix’s leading global interconnection services to connect with customers and partners, participate in rich digital ecosystems, and grow their businesses across Africa and all over the world. “

Additional resources

About Equinix

Equinix (Nasdaq: EQIX) is the global digital infrastructure company, enabling digital leaders to harness a trusted platform to bring together and interconnect the foundational infrastructure that powers their success. Equinix gives today’s businesses access to all the right places, partners and possibilities they need to accelerate their advantage. With Equinix, they can scale with agility, accelerate the launch of digital services, deliver world-class experiences and multiply their value.

Forward-looking statements

This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the expectations discussed in these forward-looking statements, including statements relating to the acquisition of MainOne, the expected benefits of the acquisition and the expected timing for the closing of the acquisition. Factors that could cause such differences include, but are not limited to, risks to our business and operating results related to the COVID-19 pandemic, unforeseen costs or difficulties related to the integration of centers. data or companies that we have acquired or will acquire in Equinix, including MainOne; the challenges of acquiring, operating and building IBX data centers and developing, deploying and delivering Equinix services, including in MainOne data centers; a failure to collect significant revenue from customers in newly built or acquired data centers, including those acquired from MainOne; competition from existing and new competitors; the ability to generate sufficient cash flow or raise funds to repay new or outstanding debt; the loss or decline of the business of our major customers; and other risks described from time to time in documents filed by Equinix with the Securities and Exchange Commission. In particular, see recent Equinix Quarterly and Annual Reports filed with the Securities and Exchange Commission, copies of which are available on request from Equinix. Equinix assumes no obligation to update any forward-looking information contained in this press release.

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SOURCE Equinix, Inc.


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